The Minorities and Women-Owned Business Enterprise (MWBE, MBE, WBE) was established to enhance equality in state contracting in the United States. It is an effort to build communities and serve citizens through equal access to opportunities within the space of procurement. The participation goal outlined by the MWBE is 30% of annual budget per year of grant funding that exceeds $25,000. Participation is generally defined by the following:

  • Purchasing services, supplies, and materials from minority- and women-owned firms (at least 51% owned by minority members and/or women)
  • Dedicating 30% of total discretionary non-personal budget to MWBE services
Challenges Faced by Procurement Agencies in MWBE Compliance and Reporting

Government CIOs and IT leaders are constantly preoccupied with management and implementation tasks, improving the usability of information and computer technology, and ultimately serving citizens via transparent and accurate reporting. Agencies that are tasked with handling taxpayer funds and utilizing them responsibly are under a lot of pressure to maintain compliance and contribute to the public good. MWBE is one such effort, and compliance requires extensive documentation.

Many public sector agencies simply do not have the additional time and manpower to dedicate to ensuring all the documentation is being properly recorded and filed. Beyond this, manually tracking critical data can lead to errors that may otherwise have been avoided by specialized compliance software. An outside vendor that provides MWBE compliance tracking software can help root out these problems and address them head-on through tangible data and carefully tracked metrics.

Here are 3 ways to Solve MWBE Contractors’ Compliance Challenges in Procurement
1. Upgrade to Automation

Automation eliminates human error that can make it difficult for government IT leaders to drive state agencies into the future. Compliance demands on both state and local levels continue to increase. There is a growing need for efficient, effective, fast-paced solutions that take the burden off government CIOs and CFOs and guarantee that taxpayer money is being handled responsibly. MWBE reporting must be completed in a timely manner and compliance must be proven via thorough documentation.

Large procurement organizations often do not have the manpower or budgetary space to devote to the careful documentation of the necessary allocation of MWBE funds. Additionally, government IT leaders have many other tasks which demand their time and energy. Automation can solve that problem. Using a compliance engine to track all necessary information in digital format will ultimately save your contracting agency time and generate highly accurate reporting that can be submitted for compliance review. MWBE compliance tracking software automates what is otherwise a tedious process prone to human error. It generates proper documentation of all participation efforts to avoid any penalties, fines, or sanctions. This promotes public accountability and ensures that tax money will be properly allocated.

2. Integrate Cloud Technology

Using a cloud-based service to track your organization’s MWBE compliance is a great way to encourage collaboration and simplify the process. Cloud computing takes your agency’s digital operations and moves them from a private network attached to a certain location on the internet, improving accessibility and engaging professional management. A government CIO managing high-level contracting can benefit tremendously from integrating cloud technology, especially when it comes to redirecting resources to maintain compliance. The cloud makes it possible for team members at all levels to access necessary data and tracking information any time from virtually anywhere.

Beyond this, when you choose to use cloud-based compliance software, you will have an unprecedented ability to stay ahead of technology shifts and changing regulatory requirements. You will also be more able to connect with MWBE-eligible firms and service providers quickly and seamlessly and create the necessary records of this. A cloud-based compliance engine can automatically join your organization with a team of industry-leading experts making it their priority to ensure your MWBE compliance.

3. Work with a Professional

State agencies are better able to serve their communities when they are outfitted with the most modern and state-of-the-art IT tools. When it comes to something as critical as MWBE compliance within the public sector, it is always best to work with an experienced software vendor. CherryRoad offers Diversity Commitment Management (DCM) to procurement agency clients, which is a cloud-based compliance solution intended to streamline project/vendor tracking for minority- and women-owned business enterprises. DCM bridges the gaps between communities by seamlessly connecting prime and MWBE suppliers with government agencies. Suppliers can easily choose from a database of pre-registered MWBEs, saving the time and effort of having to seek them out.

DCM integrates with Oracle’s enterprise resource planning (ERP) and Supplier portal and allows users to track payments as well as state-mandated commitments to MWBE contracts. Our compliance engine is designed to process high supplier volumes and provide clients with user interact as well as straightforward integration facilities with cloud ERP solutions. CherryRoad’s IT professionals stay up to date on all public sector requirements in order to ensure client compliance and public accountability, regardless of a rapidly changing marketplace.

Benefits associated with choosing DCM for your MWBE compliance needs include:

  • Integrations with Oracle
  • Supplier single sign-on (SSO)
  • Tracking of financial information based on the retained amount calculation method
  • Tracking of all sub-contractor information
  • Capture of supplier payments
  • Low-cost subscription-based pricing model
  • Comprehensive reporting

Happy to help:

To schedule a free demo of Diversity Commitment Management Solution (DCM) and understand how it help you resolve MWBE Compliance issues, please email us at clientcare@cherryroad.com